The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-09-22
THE MONEY STRINGENCY.
New York Business Men and Financiers
Differ as to the Governments Duty.

NEW YORK, Sept. 2l-The Tribune SAYS:
Secretary Faircnild has been urged with great
solemnity by prominent bankers and other citi-
zens. during the past week, to give relief to the
money market by large purchases of bonds with
out being too particular as to the price. It is
said that such purchases would start strong
rally in the stock and other speculative markets,
and the Secretary is aware that this explains
the motive of some who appeal to him. But
there is real want of loanable funds in CONNER
DIAL circles; and the most legitimate trade as
well as some branches Of productive industry,
are unquestionably embarrassed by lack of
available resources. The difficulty is that
the speculative force is like ex-
panding steam in a boiler, safe when confined,
perilous only when suffered to get beyond re-
stralnt. That strong rally would Immediately
follow any expansion by the Treasury is adj
mitted, and the Secretary is perfectly aware
that, with higher prices for stocks, grain. pro-
visions, cattle and other objects of speculation.
more money would be required to carry and
to handle the same quantity Of supplies. Sec
rotary Fairchild should understand that no
financial relief. but only more pressure, with
final collapse, lies that way. He did not help
business, but speculation, when he rapidly in
fated the currency last year. If he puts out
ten. twenty fifty millions now every
dollar that it could get would be absorbed by
speculation, and the needs OF legitimate
trade might be in no respect better
supplied than they are now. If
the Seer etary could loan or pay direct to the
merchants manufacture rs and not to the
holders of bonds, that would be another matter
But the holders of bonds are not the merchants
or manufacturers. and they are apt to seek as
prontanie employment or money as they can
get. and the speculator will offer higher il rerest
than any legitimate operator This is not
good time to initiate again. because the effects of
former UNI wise imitation make money tight the
supply of money in the country is abundant for
all legitimate needs. 1t is not large enough to
enable bold operators to buy up the world and
all its crops. or to build in all the houses.
stores, railroads, factories and other structures
that will be wanted five years hence.
The World prints interviews with the leading
bankers and merchants of this city to why
money is SO scarce" There is a large variety of
views expressed, but the preponderance of opin-
ion is that Congress is BILE for the present
state of affairs. Some think that the Secretary
of the Treasury should relieve the pressure by
a liberal purchase OF bonds, but all think that
Congress should, at its next session, reduce taxa
ton. 1t seems from the interviews, that the
merchants are suffering for money even more
than the W street SPECTATORS
President George S. Coe. OF the American
Exchange Bank, said: zone of the principal
causes which have brought about the stringency
in the money market is the Universal enterprise
and activity in the country, which has created
demand for all the money and has scattered it
over very large area, so that it does not return
at this season to the same extent as in former
years. This deficit comes just at time when
the great crops of the country to be moved.
The administration could come to the relief by
buying bonds and depicting the treasury. They
have the money and could do it."
President Williams, of the Chemical Bank,
says it Is the activity of business and the lock-
ing up of money in the treasury that is causing
the trouble. He favors large purchases of bonds.
President Tappen. OF the Galiatin National
Bank. favors the buying of all kinds of govern
ment bonds by the Treasury He thinks the
present Treasury officials have policy.
Frederick p. Ocott president of the Coal
Trust Company, said: 'The government should
buy all issues of government bonds. If the gov
ernment is sincerely and earnestly in favor of
helping the business community, it must do it
on larger scale than any attempted SO far. Is
1t the general opinion that the government has
any fixed financial poicyW THE government
doesn't seem to haT eny fixed policy financially.
So fer as can be Iearslud il has not advised with
any one outside OF Washington. In former times,
under Republican rule whenever financial
crisis threaterSd. the Secretary of the Treas
ury, or someone representing him. came to New
York to obtain this opinion of men representa-
tive IN commercial and financial interests. This
administration does not seem have done any
thing of the kind. Ordinarily, with a tight
money market, 10 is Wall street which clarnors
for relief In this instance it is not Wall street,
but the commercial interests that ask for assist
ance. 1t is not the SPECTATORS, but the mer-
chants who want IL Wall street ia not suffer
ing All the money necessary can be obtained
on good collateral at per cent The crisis is
due to the constant and daily drain of the Treas
ury upon our commercial industries. The
Treasury ia responsible for it, and the Treasury
only can give US relief"
And the best way to stop it,"
'There two ways. The first is to take
the duty off certain things the necessaries of
life; second, by putting the duties on luxuries
so high that importation of these articles will
cease" Mr.. Olcott is Democrat
Manger Camp OF the Bank Clearing house
Association, said 1.-THE banks are all right
except that they would like to accommodate the
merchants demands for money There is I'M
questonably very active and firm money mar
ket, but / have no apprehensons whatever of q
money panic. The very talk about a money
panic that has been going on for some time
operates to prevent one"
President Stewart. of the United States Trust
Company, thinks there are three causes. First
The locking up of money by the Treasury: sec
ond the real estate speculation; third, the vast
amount Of railroad building in the West.
William Dowd. president Of the bank ofNorth
America, said: The first cause is the creating
in Western cities of what is called reserve cen
ters. Under this arrangement the money is
kept in Chicago, st. Paul and other places in
stead of here and the banks here have not ad-
iusted themselves to this state of affairs year
two held 1914 600 900 OF specie and
legals, two years $144, 900, 900. while now we
only have $88, 600, 600, and the difference means
loss of deposits, and that largely due to these
new reserve centers. Then. again, vast
amount of money has gone to build railroads
and most of that comes from here. The Treas
ury Department could. if it would, relieve mat
ters st once by buying block of bonds-say
$50. 000, coo to $50 600 000"
A. s. Hatch, ex-presIdent of the Stock Elk.
change, said Il am not alarmist in regard
TO the money market. l don't believe we are
going to have money panic. such would shake
the commercial interest of the country; but
shall have such a tight money market as will
puncture the airy bubbles of a bull stock
market"
Henry Claws thinks money is not particularly
scarce in Wall street. E. r. Livermore. the
-four merchant, says the money scare is not af-
fecting his trade. Ex-Nayor Edison, a grain
merchant, thinks the remedy is with Congress.
He thinks the present condition of affairs very
serious. He thinks the merchants are the great
est sufferers. Coffee merchants think the condi-
ton serious, and believe that the government
should act immediately Charles D.. Miller.
last thing TO be done in a situation like the
present is cry out. like babies. the admin